Wednesday, February 25, 2015

Brian Romanchuk — U.S. Economy: This Was Not Supposed To Happen


Brian covers a lot of ground in this analysis, which includes a journey through the natural rate doctrine and its use by the Fed.

Bond Economics
U.S. Economy: This Was Not Supposed To Happen
Brian Romanchuk

2 comments:

Matt Franko said...

They have to be reeeeaaaallllly careful how they do this or they could "bankrupt" themselves...

Matt Franko said...

Also,

They have been buying about $20B / month in MBS lately (dealing with pre-pays due to the refis last months...):

http://newyorkfed.org/markets/ambs/operations/lastTwenty.html

I'm sure they are "getting a good deal for the taxpayer" in the process....

If they ever stop "rolling over balances", imo we could get one hell of a bond rally....

rsp,